BOA, WellsFargo, Chase now originate 52% of all loans

[Bo]

Do You Feel Like a Gov't Contractor? No matter how you slice it, everyone is just a conduit to the gov't which eventually guarantees or insures the loan and the ending bank just does the servicing while the defacto owner of the mortgage is the gov't. That is what the business has become, and a LO is now in the role of a gov't contractor. Having to know all the guidelines and nuances to fit the loan into Uncle Sam's pocket. You have to embrace that idea or go to Plan B - selling used iPods at the flea market - as 80% of all residential loans this year have benefitted from some form of gov't support (MBA figures). Never mind that this system is entrenching the taxpayer as the 'fall guy' for any default risk. The big banks are very pleased to get any risk off their books and immediately put it with Fannie, Freddie or FHA. Bank of America, Wells Fargo and Chase originate 52% of ALL mortgages in the first half of this year - double their market share just since 2005.

I can't help but believe that mortgage loans are very mis-priced. I see that in the fact that banks have no desire to keep even the most common low risk, high score, low LTV mortgages on their books. So, why should the taxpayer be willing to take them? Awwww, gee, guess he is just a smock.

[thunder rising]

1. Funny interpretation of the numbers. Did they double their market share or did the competition die

[madrchsod]

2. wells fargo has one of the largest numbers of foreclosures in my area...

it`s always reassuring that at least the criminals still can find work

[hughee99]

4. Is this from their loans, or because of the merger with Wachovia?

If I recall, Wells wasn't one of the companies that saddled itself with a bunch of bad loans, though they did buy Wachovia, who did.

[SpiralHawk]

3. "Smirk." - FatCat Republicon Cronies (R - Greed)

"Too bad about you little people. Smirk." - Fatcat Republicon Cronies

[marmar]

5. Unreal.....But it's hard to be shocked anymore.

The United States of Corporate America.

[FarCenter]

6. Banks don't have enough reserves to keep more mortgages on their books

Investors won't buy them without government covering the credit risk.

US homeowners have proved that they are not creditworthy.

Especially in CA, AZ, NV, FL and other states with non-recourse mortgages that let the homeowner walk away.

[QC]

7. Sounds like an oligopoly. n/t

[kentuck]

8. yep.

Same as a monopoly, only now we have 3 companies controlling everything, instead of just one.

[OmmmSweetOmmm]

9. Do you have a link for this?